University of Alabama board of trustees votes to raise tuition

Graduates fill the floor during one of the University of Alabama spring commencement ceremonies at Coleman Coliseum in Tuscaloosa on in May 2013.

Dusty Compton | The Tuscaloosa News

By Stephanie TaylorStaff Writer

Published: Friday, June 14, 2013 at 2:26 p.m.

Last Modified: Friday, June 14, 2013 at 2:26 p.m.

The University of Alabama board of trustees voted Friday to raise tuition at each of the system's three campuses.

Tuition will increase 2.7 percent, or $125 per semester, for students from Alabama. It's the lowest annual tuition increase since the 1980s, said Kellee Reinhart, vice chancellor for system relations.

In-state, full-time students will pay $4,725 each semester while students from other states will pay $11,475 — an increase of $500.

"We continue to be very concerned about being affordable to our students while maintaining the quality of education that our students expect and deserve," said Ray Hayes, the system's executive vice chancellor for finance and operations. "We spent a lot of time talking about how we can keep the increase the least amount possible."

Hayes said that the system is facing an increase of more than $18 million to the employer portion of the mandatory contribution to the Teachers Retirement System, which provides pension coverage for around 230,000 active, retired or other former employees of the state's universities, two-year colleges and public schools.

The campuses were challenged to meet the retirement mandate while keeping tuition increases to a bare minimum, he said.

State funding cuts in recent years have meant that tuition rather than government appropriations have become the predominant source of income for UA, Hayes said. State appropriations to the system have decreased from $615 million in 2008 to $447 million for the 2013-14 academic year, Hayes said. Appropriations for the upcoming year exceed last year's $442 million, but the additional money must be used for the increases to the retirement fund, he said. An improving economy could mean future increases in appropriations, which could keep tuition from drastic increases in upcoming years, Hayes said.

"In the recent legislative session, the dedicated efforts of Gov. (Robert) Bentley and the leadership of the Legislature made possible a modest increase in funding for higher education. We appreciate their help and their understanding of the return on investment Alabama citizens receive from our universities," UA System Chancellor Robert Witt stated in a release.

"The trustees have made a firm commitment to keeping tuition affordable while ensuring that our students receive the highest quality education that will prepare them for lifelong success," he stated. "Today's action by the board is a milestone for our system."

The system still charges less than $10,000 for in-state students per year, Hayes said, while most other public universities have exceeded that in recent years, Hayes said.

The tuition hike is expected to generate an additional $15.8 million for the UA main campus.

Tuition for full-time undergraduate and graduate students who attend the main campus will increase $125 per semester. Tuition for full-time students from out of state will increase $500 per semester.

Law school tuition would increase $670 per semester for in-state students and $960 for out-of-state students.

Tuition and mandatory fees for the coming academic year at UAB and UA's Huntsville campus will be less than $4,600 per semester. For UAB students, an increase of $252 per semester will take the total to $4,452. In Huntsville, the increase of $199 per semester will be $4,596 for undergraduate in-state students taking 15 semester credit hours.

Trustee Jim Wilson III of Montgomery referenced the Marketplace Fairness Act, legislation pending in the U.S. Congress that would make it easier for states to collect sales and use taxes from online retailers. Additional tax money that could be collected if the bill passes could help offset future tuition increases, he said.

"When sales taxes are not paid on Internet items, the state, county and cities suffer," he said. Taxes collected from online commerce would generate an estimated $300 million this year, which would mean an additional $150 million to the state's general fund.

"Hopefully, with that increase in income, we could look forward to more dollars in the coffers of the state. We could get more funding so we can keep tuition as low as possible," he said.

<p>The University of Alabama board of trustees voted Friday to raise tuition at each of the system's three campuses.</p><p>Tuition will increase 2.7 percent, or $125 per semester, for students from Alabama. It's the lowest annual tuition increase since the 1980s, said Kellee Reinhart, vice chancellor for system relations.</p><p>In-state, full-time students will pay $4,725 each semester while students from other states will pay $11,475 — an increase of $500.</p><p>"We continue to be very concerned about being affordable to our students while maintaining the quality of education that our students expect and deserve," said Ray Hayes, the system's executive vice chancellor for finance and operations. "We spent a lot of time talking about how we can keep the increase the least amount possible."</p><p>Hayes said that the system is facing an increase of more than $18 million to the employer portion of the mandatory contribution to the Teachers Retirement System, which provides pension coverage for around 230,000 active, retired or other former employees of the state's universities, two-year colleges and public schools.</p><p>The campuses were challenged to meet the retirement mandate while keeping tuition increases to a bare minimum, he said.</p><p>State funding cuts in recent years have meant that tuition rather than government appropriations have become the predominant source of income for UA, Hayes said. State appropriations to the system have decreased from $615 million in 2008 to $447 million for the 2013-14 academic year, Hayes said. Appropriations for the upcoming year exceed last year's $442 million, but the additional money must be used for the increases to the retirement fund, he said. An improving economy could mean future increases in appropriations, which could keep tuition from drastic increases in upcoming years, Hayes said.</p><p>"In the recent legislative session, the dedicated efforts of Gov. (Robert) Bentley and the leadership of the Legislature made possible a modest increase in funding for higher education. We appreciate their help and their understanding of the return on investment Alabama citizens receive from our universities," UA System Chancellor Robert Witt stated in a release. </p><p>"The trustees have made a firm commitment to keeping tuition affordable while ensuring that our students receive the highest quality education that will prepare them for lifelong success," he stated. "Today's action by the board is a milestone for our system."</p><p>The system still charges less than $10,000 for in-state students per year, Hayes said, while most other public universities have exceeded that in recent years, Hayes said.</p><p>The tuition hike is expected to generate an additional $15.8 million for the UA main campus.</p><p>Tuition for full-time undergraduate and graduate students who attend the main campus will increase $125 per semester. Tuition for full-time students from out of state will increase $500 per semester.</p><p>Law school tuition would increase $670 per semester for in-state students and $960 for out-of-state students.</p><p>Tuition and mandatory fees for the coming academic year at UAB and UA's Huntsville campus will be less than $4,600 per semester. For UAB students, an increase of $252 per semester will take the total to $4,452. In Huntsville, the increase of $199 per semester will be $4,596 for undergraduate in-state students taking 15 semester credit hours.</p><p>Trustee Jim Wilson III of Montgomery referenced the Marketplace Fairness Act, legislation pending in the U.S. Congress that would make it easier for states to collect sales and use taxes from online retailers. Additional tax money that could be collected if the bill passes could help offset future tuition increases, he said.</p><p>"When sales taxes are not paid on Internet items, the state, county and cities suffer," he said. Taxes collected from online commerce would generate an estimated $300 million this year, which would mean an additional $150 million to the state's general fund.</p><p>"Hopefully, with that increase in income, we could look forward to more dollars in the coffers of the state. We could get more funding so we can keep tuition as low as possible," he said.</p><p>Reach Stephanie Taylor at stephanie.taylor@tuscaloosanews.com or 205-722-0210.</p>